Arkansas to Appeal Ruling vs. Ban on Chinese Role in Crypto Mining

Arkansas Gov. Sarah Huckabee Sanders will be appealing a recent ruling by a federal judge that prevented the state from enforcing an anti-foreign influence law. The legislation prohibits businesses owned by foreign parties like nationals from China from owning crypto mines in Arkansas. 

“I was proud to be the first governor in the country to kick a communist Chinese-owned company off our farmland and out of our state, and we won’t let one court ruling stop my administration from being the toughest on China in the entire country,” said Sanders.

“I plan to work with Attorney General [Tim] Griffin to appeal this ruling, stand with President [Donald] Trump as he fights back against our foreign adversaries, and continue our work to get Chinese influence out of Arkansas,” the governor explained. 

With the continued prevalence of foreign influence on American citizens, states such as Arkansas and Wyoming have sought to reassert their sovereignty and protect their residents. The Arkansas law in question is called Act 174, and it enables the Oil and Gas Commission of the Arkansas Department of Energy and Environment to prevent permitting for crypto mines by companies owned by foreign adversaries. It also enables the Arkansas state government to investigate companies already operating mines. 

After the legislation, Jones Eagle LLC was subsequently investigated by the state. Qimin “Jimmy” Chen, is the sole owner of Eagle Asset Holding Inc., which has a controlling interest in Jones Eagle LLC. Chen was born in China, but is a naturalized American citizen. 

In a press statement announcing the investigation into the company, the Arkansas secretary of agriculture said that “A review of Jones Digital’s ownership indicates that the entity may have significant ties to China.”

The Arkansas Cryptomining Association subsequently sued the director of the Oil and Gas Commission on March 13. The federal judge assigned to the case, Kristine Baker, chief judge of the U.S. District Court for the Eastern District of Arkansas, issued a preliminary injunction and temporary restraining order that prevents the enforcement of Act 174.

Baker, a 2012 appointee of President Barack Obama, said that the Arkansas Cryptomining Association is likely to succeed on the merits that Arkansas law’s regulations on foreign ownership are likely precluded by federal law.

Sanders has zealously sought to combat Chinese ownership of American land, leading the charge in forcing the divestment of Syngenta from its Chinese ownership and fining the company $280,000. The governor’s legislative priorities dubbed the “Communist China Defense legislative package” banned sister cities arrangements with China, tightened restrictions on companies linked with China owning land near critical infrastructure, and made it illegal for colleges and universities to receive state funding from Arkansas if they hosted a Beijing-backed Confucius Institute.

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